Analysis of Price and Income Elasticities of Energy Demand in Ecuador: A Dynamic OLS Approach
By Kathia Pinzón. 2016
55 citations recorded by the source corpus.
Energy consumption in Ecuador has increased significantly during the last decades, affecting negatively the financial position of the country since large energy consumption subsidies are provided in its internal market and Ecuador is mostly a crude oil exporter and oil derivatives importer country. This research seeks to state the long run price and income elasticities of energy demand in Ecuador, by analyzing information spanning the period from 1970 to 2015. A cointegration analysis and an estimation by using a Dynamic Ordinary Least Squares approach considering structural breaks is carried out. Results obtained are robust and suggest that in the long run energy demand in Ecuador is highly income elastic, has no relationship with its price and has an almost unitary but inverse relationship with the industrial production level. Conclusions and economic policy suggestions are also provided.
Subfields: Economics and Econometrics, Renewable Energy, Sustainability and the Environment
View Paper: https://www.semanticscholar.org/paper/b312c20b35ae6786e9a87370a5a265dcc708af4f
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In Economics and Econometrics
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Citations in the corpus
- Does financial development asymmetrically affect CO2 emissions in China? An application of the nonlinear autoregressive distributed lag (NARDL) model (2018, background): “[67] India (1971–2007) There is a positive relationship between CO2 and energy consumption and capital, and an inverse relation with GDP and population.”